SAO PAULO (Dow Jones)–Brazil posted a foreign trade surplus of $619 million in the March 16-22 period, the Trade and Development Ministry said Monday.
For the period, exports totaled $2.793 billion while imports were $2.174 billion. Year-ago figures weren’t provided.
With the new March figures, Brazil’s year-to-date trade surplus fell to $2.28 billion from $2.33 billion seen in the same period of 2008.
Analysts are expecting comparatively weak trade performance for this year.
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LONDON (Dow Jones)- Bank of England Monetary Policy Committee member David Blanchflower said Monday forecasters tend to underestimate unemployment in downturns, so estimates that the U.K. jobless rate will hit three million are probably too optimistic.
Speaking to lawmakers on how to tackle the problem of unemployment, Blanchflower - a labor economist - criticized calls Monday from major business lobby group the Confederation of British Industry for the government to avoid further fiscal stimulus in its Budget Report due April 22.
“I would answer that by saying, ‘So what are you going to do about unemployment?’” Blanchflower said.
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LONDON (Dow Jones)–Following are European Central Bank foreign exchange reference rates. All currencies are quoted against the euro.
US Dollar USD 1.3558
Japanese yen JPY 131.12
Bulgarian lev BGN 1.9558
Czech koruna CZK 26.82
Danish krone DKK 7.4506 Read More
CHICAGO (Dow Jones)–The nation’s economy remained in deep recession during a three-month period ending in February.
However, data released Monday by the Federal Reserve Bank of Chicago indicated the contraction in economic activity may have bottomed out in January when it dropped to a 34-year low.
The Chicago Fed’s National Activity Index’s moving average for the three-month period ending in February was at -3.48, from a downwardly revised -3.61 in January, the lowest reading since February 1975. The Chicago Fed originally estimated the January figure at -3.41.
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By Andrea Thomas and Nina Koeppen Of DOW JONES NEWSWIRES
BERLIN -(Dow Jones)- German fiscal arithmetic looks increasingly fragile as more private-sector economists revise their own forecasts to show double the rate of economic decline still used by government planners.
The German government’s forecast, which it will review again on April 29, was set in January to show a 2.25% contraction in gross domestic product this year. But Germany’s anticipated 2009 tax intake is still based on an October forecast of 0.2% growth this year.
Private-sector economists and think tanks that regularly advise the government see much worse on the way, with sharper GDP cuts eating into tax revenue and driving up welfare costs.
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By Dan Molinski Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- The dollar was modestly weaker against the euro and stronger against the yen early Monday in New York as investors awaited official details of a U.S. Treasury Department plan to mop up toxic assets.
Some details of the plan, which will be announced at 8:45 a.m. EDT Monday by Treasury Secretary Timothy Geithner, have already emerged, and that helped boost global stock markets overnight. The rise in stocks has reduced appetite for dollars as a safe haven and is giving a lift to the euro and the U.K. pound.
“Investors are cautiously cheering Treasury Secretary Geithner’s pending announcement,” said Brian Kim, currency strategist at UBS. The plan could create a series of public-private investments to absorb up to $1 trillion in troubled loans and securities from banks.
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By Andrea Thomas and Nina Koeppen Of DOW JONES NEWSWIRES
BERLIN -(Dow Jones)- German fiscal arithmetic looks increasingly fragile as more private-sector economists revise their own forecasts to show double the rate of economic decline still used by government planners.
The German government’s forecast, which it will review again on April 29, was set in January to show a 2.25% contraction in gross domestic product this year. But Germany’s anticipated 2009 tax intake is still based on an October forecast of 0.2% growth in 2009.
Private-sector economists and think tanks that regularly advise the government see much worse on the way, with sharper GDP cuts eating into tax revenue and driving up welfare costs.
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BUDAPEST -(Dow Jones)- Hungarian Prime Minister told Parliament Monday that he intends to step down and called for a new government to be formed headed by a new premier.
“My decision is final and irreversible,” Gyurcsany said in a speech to Parliament.
Gyurcsany already announced his intention to resign Saturday at a congress of his Socialist Party.
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LONDON -(Dow Jones)- The new basket of goods used to calculate official U.K. inflation reveals U.K. consumers’ penchant for hot takeaway food from supermarkets and their enthusiasm for the latest technologies.
In its annual review of the goods and services prices basket, the Office for National Statistics said Monday it is adding bottled rose wine and hot rotisserie chicken to reflect changing consumer tastes and habits.
Internet-based DVD subscriptions, high definition Blu-ray discs, MP4 players - which play video as well as audio - and Freeview TV receiver boxes also made the list, the latter responding to the digital TV switchover.
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BRUSSELS -(Dow Jones)- The European Commission Monday cleared the Austrian government to give companies facing funding problems up to EUR500,000 in 2009 or 2010.
This plan, which has a budget of EUR300 million, aims to help companies cope with tight credit conditions. This aid will be available only to businesses that weren’t facing problems on July 1, 2008, the commission said in a statement.
The funding can be given at any time during 2009 and 2010 but must not exceed EUR500,000 per company.
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